Iran’s Cheap Electricity Costs Continues to Attract Bitcoin Miners From Around the World

Chinese investors are increasingly moving to countries such as Myanmar, Vietnam, Iran, and Thailand in search of affordable electricity. In a recent interview, investors disclosed that Iran offers electricity at the cheapest price. The challenge, however, is managing thousands of mining rigs over the Iranian border.

According to 8btc, a China-based publication, it is difficult to establish a cryptocurrency mining facility in Iran. Liu Feng, a cryptocurrency miner, said that many miners have moved to Iran because the cost of electricity is the cheapest in the Asian region. Apparently, one kilowatt-hour of electricity goes for just $0.006 in Iran. In comparison, China charges $0.04 for every unit of electricity.

As expected, miners have been flocking Iran to take advantage of the low energy costs. Feng claimed that he has a facility that can support up to 20,000 Antminer mining rigs. The manufacturer has already promised to deliver the hardware, but there are logistical challenges.

According to Feng, the Iranian government has banned the importation of Bitcoin miners because they consume large amounts of electricity. He further stated that government officials have been confiscating all mining equipment at the entry points.in fact, the border security has seized over 40,000 mining rigs to date.

However, Feng disclosed that he has managed to sneak 3,00 rigs with the help of friendly customs agents. Besides the border officials, Feng has also had to deal with the inconsistency of electricity companies. Initially, he agreed with an energy company to buy electricity at $0.009 per unit, only for the company to double the cost after two months. He then moved to a steel mill, but complaints from the neighboring community over noise meant that his operation was shut down and his machinery was seized.

Regardless, Feng still maintains that Iran is the best place to run a Bitcoin mining facility. This is because Iran’s president supports the creation of an industrial park focused on cloud computing. Also, the government has already recognized crypto mining as an industry and is planning to approve the importation of mining hardware for Bitcoin and other virtual currencies.

That said, it will take time for Feng’s vision to come to pass. The harsh regulations against importing mining hardware are still in place and border officials will continue to seize such equipment. Last year, Nima Dehqan, a cryptoanalyst based in Tehran, said that mining operators from all over the world favor Iran over other locations.